Cabot Corporation (CBT)
Financial leverage ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,604,000 | 3,525,000 | 3,306,000 | 2,781,000 | 3,004,000 |
| Total stockholders’ equity | US$ in thousands | 1,264,000 | 898,000 | 947,000 | 691,000 | 998,000 |
| Financial leverage ratio | 2.85 | 3.93 | 3.49 | 4.02 | 3.01 |
September 30, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,604,000K ÷ $1,264,000K
= 2.85
The financial leverage ratio for Cabot Corp. has displayed fluctuations over the past five years. The ratio declined from 4.02 in 2020 to 3.01 in 2019, indicating a decrease in the company's reliance on debt to finance its assets. However, in 2022, the ratio increased to 3.93 before dropping to 2.85 in 2023. This indicates that the company's reliance on debt has decreased in the most recent year, suggesting a potential improvement in its financial risk profile. It is important to note that a lower financial leverage ratio generally indicates lower financial risk, as the company is less reliant on debt financing. However, it is imperative to consider the broader financial context before making definitive conclusions about the company's financial health.
Peer comparison
Sep 30, 2023